It is too easy to borrow money from others these days, especially using credit cards. Just so it is clear – I am not saying that you should not use credit cards at all. Some experts are adamantly opposed to credit cards. I do not agree with them. Three good reasons exist for why you should consider using credit cards: they are convenient, they help build your credit score, they enable you to shop online. Both of you know that I have multiple credit cards that I use them all the time. I have one credit card for daily purchases. The other one is for online transactions. It is rare that I carry around a lot of cash. Quite honestly, there is not much of a need for cash in the modern business world. Instead, I purchase items with my credit cards, and then pay them off monthly.

But, credit cards can be dangerous if you abuse them. Banks want you to get into debt abusing your credit cards so that they can charge you high interest rates to profit from your debt. If you pay off your credit card bill each month, then you will not owe them any interest. It sounds easy, but it is more difficult than you think. I recommend avoiding this trap as much as possible. I know from personal experience that living in credit card debt is not good. When we first moved to Northern Virginia, we used our credit cards to buy a lot of items we needed. Moving into a new house is always expensive. I was not diligent about paying off the credit cards. The reality was that I did not have the money to pay off the cards. The debt started to pile up. After a few years, the credit card debt exceeded $20K. I did not have a good plan to pay off the debt, so I took what seemed like a radical, but necessary step at the time. I refinanced the house to pay off the credit cards.

It is very easy to overspend with credit cards which have limits that are usually higher than what you will earn in a month. Stores want you to buy stuff, so don’t rely on them to ask you if you really need to buy that extra item. You need to ask yourself that question…before you swipe the card. Do I really need this item?

Proverbs 22:7: The rich rule over the poor, and the borrower is slave to the lender.

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